What constitutes a curable default that could lead to termination of an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary * | |
|---|---|---|---|
| Franchise or other Agreement | |||
| c Requirements for you to renew or extend | 2.2 | Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, not in material default, release, sign then-current form of Franchise Agreement (which may contain materially different terms and conditions than the original agreement), pay a renewal fee, and others; please refer to §§ 2.2.1 –2.2.7 in the Franchise Agreement. | |
| d Termination by you | Not applicable | Subject to state law, you may not terminate the Franchise Agreement. | |
| e Termination by us | Not applicable | ||
| without cause | |||
| f Termination by us with cause | 15 | Default under agreement, bankruptcy, abandonment, and other grounds; see § 15 of the Franchise Agreement. (Under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing.) | |
| g “Cause” defined – | 15.3 | All other defaults not specified in §§ 15.1 and | |
| curable defaults | 15.2 of the Franchise Agreement | ||
| h “Cause” defined – non-curable defaults | 15.1 and 15.2 | Bankruptcy, abandonment, conviction of felony, and others (but under the U.S. Bankruptcy Code, 11 U.S.C. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 45–48)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, a curable default is defined as any default not specified in sections 15.1 and 15.2 of the Franchise Agreement. These sections outline non-curable defaults, meaning that any other type of default is considered curable.
For a prospective Engineering For Kids franchisee, this means that if they breach the Franchise Agreement in a way that isn't explicitly listed as a non-curable default (such as bankruptcy, abandonment, or conviction of a felony), they will have an opportunity to correct the issue and avoid termination of their franchise. The specific process for curing a default, including the timeframe allowed for correction, would be detailed elsewhere in the Franchise Agreement, likely in Section 15.3.
It's important for potential Engineering For Kids franchisees to carefully review the entire Franchise Agreement, especially sections 15.1, 15.2, and 15.3, to fully understand what constitutes both curable and non-curable defaults. Knowing the difference can help franchisees avoid actions that could lead to termination and understand their rights and responsibilities if they do receive a notice of default. Franchise agreements typically outline specific procedures for notifying franchisees of defaults and providing opportunities to cure them, so understanding these procedures is crucial for protecting the franchisee's investment.